HC Deb 26 July 1966 vol 732 cc1428-9
30. Mr. Biffen

asked the Minister of Power if the deferred capital expenditure plans for the coal industry arising from recent proposals to reduce demand in the economy will apply only to activities outside development areas.

Mr. Marsh

I am expecting to receive the Board's proposals shortly for giving effect to the cut in investment but I have no doubt the Board will, where practicable, avoid cutting expenditure in development areas.

Mr. Biffen

Are we to assume from that Answer that the cuts in the investment proposals of the nationalised industries, including the National Coal Board, were decided by the Government without any prior consultation with those industries?

Mr. Marsh

The cuts were decided in the light of information which we received from the industries. Consultation with the industries is still continuing.

Mr. Patrick Jenkin

Does this mean that there will be a cut in the investment in the profitable coal mining areas of the East Midlands and Yorkshire and no cut in investment in areas where the coal industry is declining, such as Durham and Scotland?

Mr. Marsh

It is not a question of using these cuts in this way. It is a question of making the economies which are necessary by agreement with the N.C.B. in ways which will not prejudice the Board's operations.